Strategy Reports $8.6B Loss as Bitcoin Price Decline Hits Balance Sheet

Strategy Inc., formerly known as MicroStrategy, reported an $8.6 billion net loss for Q2 FY2026, largely due to a non-cash mark-to-market hit on its Bitcoin holdings.

The company's Bitcoin stash increased by 11% to a record 846,000 BTC during the quarter, while long-term debt was reduced by 18% to $6.7 billion through a discounted convertible note repurchase.

STRC, Strategy's flagship digital credit product, saw its notional double to $10.5 billion but fell below its targeted par price of $99-$100, prompting management to unveil a five-pillar recovery plan that includes a $1 billion buyback program and a strengthened USD reserve.